2 Top Growth Stocks to Buy With $200

While some investment opportunities are only available to the very wealthy or those with strong connections, anyone can invest in stocks. That's one factor that makes equity markets one of the best ways to accumulate wealth.

Here's another. Even on a budget, it's possible to buy shares of outstanding companies that can deliver strong returns over the long run. Case in point: For those with just $200 to spare, here are two top stocks trading well under that price point to consider buying right now: Robinhood Markets (NASDAQ: HOOD) and Roku (NASDAQ: ROKU).

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1. Robinhood Markets

Robinhood has hit a rough patch during the past month or so. It had nothing to do with its latest quarterly update. Its third-quarter financial results were strong, with robust growth on the top and bottom lines, and solid progress elsewhere.

However, Wall Street is increasingly concerned that Robinhood relies too much on the volatile cryptocurrency market. Crypto trading accounts for a significant share of revenue for the fintech specialist, and when it is in decline -- which happens more often than one might like -- Robinhood suffers.

This is a risk for Robinhood, and it's essential to keep that in mind. However, the stock could still be a great buy at $200 (shares now trade for about $132) for long-term investors, as it has expanded its ecosystem and continues to add to its suite of services. The fintech now has 27.9 million investment accounts, representing an 11% increase compared to the same period last year.

In recent months, the company has launched several new products, including some to cater to active traders. And it has several revenue streams that should eventually help mitigate its exposure to the crypto market.

The company's premium service ended the third quarter with 3.9 million subscribers, representing a 77% year-over-year increase. Robinhood is also expanding internationally and now has about 700,000 funded customers in the U.K. and the European Union.

There are huge growth opportunities worldwide that Robinhood, thanks to its interactive platform and appeal among younger customers, should be able to capitalize on in the long run. That's especially the case since it is building a moat. The company's brand name is tied to the commission-free stock trading model it helped pioneer, and it is developing high switching costs as its customers invest more money across various accounts and services on its platform.

That's why Robinhood remains attractive. After seeing its shares soar during the past two years, the stock may still have considerable upside for investors willing to stay the course.

2. Roku

Roku has significantly underperformed the market during the past five years, falling about 70%, as the success it experienced between 2020 and 2022 came to a screeching halt. However, the stock has performed well this year.

There is still ample room for the streaming specialist to improve its financial results and eventually return to the highs it achieved a few years ago. Streaming is still gaining ground. That's evident in the company's own financial results.

In the third quarter, Roku's revenue increased 14% year over year to $1.2 billion, while streaming hours came in at 36.5 billion hours, 4.5 billion more than the prior-year quarter. Growing engagement is a gold mine for Roku as it strengthens its network effect and makes its platform even more attractive for advertisers, which is its most important source of revenue by far. At the bottom line, Roku recorded earnings per share of $0.16, which is significantly better than the loss of $0.06 reported in the year-ago period.

Roku still has the top market share in the connected TV (CTV) niche of the streaming industry. And recently, it signed a deal with one of its biggest competitors, Amazon. The two entities will offer advertisers access to their combined audiences through the latter's ad platform, with Roku representing 80 million households in the U.S. and 80% of CTV households nationwide.

This deal will help boost the return on invested dollars for advertisers, thanks to a large audience and the opportunity to target potential customers more effectively. It also matters for Roku, since the deal highlights the strength of its ecosystem.

Meanwhile, it has introduced new tools for advertisers, including Roku Ads Manager, a self-serve ad platform launched a year ago that especially caters to companies with smaller ad budgets.

Initiatives such as these, coupled with the large addressable market in streaming as it continues to gain on cable, should enable Roku to perform well in the long run. The stock trades for about $100 as of this writing, allowing investors to purchase two shares with $200.

Prosper Junior Bakiny has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Roku. The Motley Fool has a disclosure policy.